SENATE BILL REPORT

SB 5668

BYSenators Moore, Benitz, Newhouse, Stratton, Smitherman and Williams

Revising provisions on the issuance of securities by public service companies.

Senate Committee on Financial Institutions

Senate Hearing Date(s):February 17, 1987; February 20, 1987

Majority Report:  Do pass.

      Signed by Senators Moore, Chairman; Bender, Vice Chairman; Bottiger, Fleming, McDermott, Metcalf, Pullen, von Reichbauer.

Senate Staff:Stephanie Yates (786-7416)

                  March 11, 1987

AS PASSED SENATE, MARCH 10, 1987

BACKGROUND:

Presently, the Washington Utilities and Transportation Commission does not grant permission to a public service company to issue securities unless the Commission has approved the final terms of the issuance.

SUMMARY:

Any order issued by the Utilities and Transportation Commission that grants a public service company permission to issue securities may be based on reasonable estimates of the final terms of the issuance; and, such order may allow the public service company to complete the transaction if the final terms are within a range of conditions established by the Commission.  The range of conditions may include a range of time in which the securities may be issued, a range in the maximum amount of the issuance, a range in the cost of the issuance, and a range in the interest rate to be paid.

An existing statutory provision is repealed that requires a public service company issuing new securities to pay to the Utilities and Transportation Commission a fee based on the principal amount or stated value of securities authorized for issuance.

Fiscal Note:      none requested

Senate Committee - Testified: Tony Cook, WUTC; Dennis Okamoto, Pacific Northwest Bell; Scott Nelson